South Korea retail sales shift online as supermarkets decline

Government stimulus boosted offline sales in late 2025.

South Korea’s retail market is shifting sharply online, with e-commerce driving growth whilst large supermarkets continue to decline, according to the Ministry of Trade, Industry and Energy (MOTIE).

A survey of 26 major retailers—15 offline operators and 11 online platforms—shows total sales grew an average 6.7% a year from 2021 to 2025. Online sales surged 10.1% annually, compared with 2.6% growth offline.

Amongst physical retailers, department stores and convenience stores led gains, each expanding more than 5% a year.

Super-supermarkets posted only marginal growth, whilst large supermarkets recorded a steep average decline of 4.2%.

In 2025, total sales rose 6.8%, driven by an 11.8% jump in online transactions. Offline sales increased just 0.4%.

Brick-and-mortar performance improved in the second half of the year after government stimulus measures, including a supplementary budget and consumption coupons, lifted consumer sentiment.

Department store sales rose 4.3% for the year, whilst convenience stores and SSMs posted only slight gains.

Large supermarkets continued to struggle, recording negative growth in every month except January, boosted by Lunar New Year spending, and October, when Chuseok holidays lifted demand. The sector posted annual sales declines for a second straight year following losses in 2024.

SSMs also lost momentum later in the year. After expanding in the first half, sales turned negative in the second half as sluggish food demand weighed on revenue per store, which has fallen for 13 consecutive months since December 2024.

Online retailers continued to post broad-based growth, particularly in food, household goods, and home appliances.

In December, total sales at the 26 retailers increased 4.4% from a year earlier. Offline sales rose 1.7%, whilst online sales climbed 6.3%.

Offline gains were led by fashion and accessories, up 5.1%, and premium international brands, which jumped 13.7%. Food sales and living and household goods continued to decline, falling 1.6 percent and 3.4 percent, respectively.

Online channels, meanwhile, recorded double-digit growth in food, up 13.7%, and a 6% increase in living and household goods.

Meanwhile, the services and other category slipped 2.4%, marking its first decline and reflecting base effects from the previous year.